VG sweep account

[tinlizzy]

I switched my brokerage account over to VG yesterday (initiated the process) and one of the questions that caught me off guard was a choice for the sweep account. Prime MM or tax-exempt national muni fund MM?

I don't plan on letting any money sit in there for any length of time so I don't really think it matters. I picked the tax-exempt.

Also, is there a fee for the MM acct. sitting at or near zero? I'm thinking in terms of fees for paper statements, which I prefer.

Total assets at VG are now about 175k which gets me out of most fees, right?

 

[Tyro]

I don't recall the specifics of total portfolio required for waiving of fees (low balance or otherwise) but I'm sure that info is readily available on Vanguard's site, and a toll-free call to them is worth more than my poor memory.

One reason for a "sweep acct." is that many folks in our situation (ER) have DIV & CG distributions swept into a single acct. with checkwriting priviledges either to meet current living expenses or to accumulate until there is enough to (re)invest. YMMV.

 

[photoguy]

Also, is there a fee for the MM acct. sitting at or near zero? I'm thinking in terms of fees for paper statements, which I prefer.

Total assets at VG are now about 175k which gets me out of most fees, right?

From Vanguard: "Vanguard charges a $20 annual account service fee for each Vanguard fund in which you have a balance under $10,000 in an account. You can eliminate this fee by signing up for our e-service package. This fee also does not apply if you're a Voyager, Voyager Select, or Flagship client. See how you qualify for our Flagship and Voyager Services."

Voyager kicks in at 50k but note that the money has to be in vanguard funds. Having say ishares ETFs doesn't count.

 

[tinlizzy]

Thx for the replies. I'm having a little anxiety over the change.

 

[LOL!]

There is no fee for using one of the money market funds for a sweep account. And you can keep the balance at zero. If it wasn't so, no one would use Vanguard Brokerage Services. You can read about this in the agreement you signed (perhaps electronically) when you opened your VBS account.

Since you are Voyager status you will not pay $20 even if you get paper statements. At least according to Vanguard's web site.

 

[Alan]

There is no fee for using one of the money market funds for a sweep account. And you can keep the balance at zero. If it wasn't so, no one would use Vanguard Brokerage Services. You can read about this in the agreement you signed (perhaps electronically) when you opened your VBS account.

Since you are Voyager status you will not pay $20 even if you get paper statements. At least according to Vanguard's web site.

What he says

I have had a VG MM fund for years now at near zero and pay nothing.

 

[Siestatime]

You're going to love Vanguard. Very user-friendly web-site and charges are exceptionally good compared to active brokerage sites. Go paperless! You have immediate access to them on the web-site and can still print any month (or every month) statement whenever you want. I'm in Voyager, so I don't believe I pay any fees, but if you do, remember they're a tax deductible expense!

 

[LOL!]

Vanguard mutual fund company is great, but Vanguard Brokerage Service is rather 3rd world. You will not love it if you have used real brokers like Fidelity, TDAmeritrade, Schwab, etc.